Sample Student Presentation Slides Strategic Management Case Analysis Dr. Paul N. Friga 2005

Overview of Document This slide deck exemplifies a student presentation of the analysis of a case study for a general management or strategic management course The case used in this study is: Singapore International Airlines: Strategy with a Smile (Thunderbird, 2001) There are multiple ways to present a case story – this is only one example The storyline is presented first, followed by the supporting data for the high-level conclusions

Singapore Airlines is in a tough situation but opportunities for global leadership exist Singapore International Airlines (SIA) is facing dramatic environmental shifts, increasing competition, and changing customer demand Several strategic options exist related to how SIA can improve its competitive positioning for the long term I recommend that SIA pursue a high-end differentiation strategy based upon unique positioning as the ‘premier long-distance airline’

Singapore Airlines is in a tough situation but opportunities for global leadership exist Singapore International Airlines (SIA) is facing dramatic environmental shifts, increasing competition, and changing customer demand Several strategic options exist related to how SIA can improve its competitive positioning for the long term I recommend that SIA pursue a high-end differentiation strategy based upon unique positioning as the “premier long-distance airline”

The environmental analysis suggests some important issues General Environment: Globalization is increasing demand for international air travel (esp. to Asia) Political changes include the increase of free trade markets (like Singapore) Economic conditions are important as recessions cause price sensitivity Industry: Consolidation in the airline industry is increasing to enhance scale and scope Alliances are the hottest strategy tool as companies seek global connections Customers are increasingly price sensitive but business segments are loyal There are little to no substitutes for international air travel External Competition: Key domestic competitors are Japan Airlines, Thai Airways, and Cathay Key international competitors are United, KLM, and British Airways SIA has the best cost structure for premium level service but losing ground What is really important? Strengths: Reputation and brand image of the “Singapore Girl” Young fleet and excellent training facilities and programs Extensive regional and international route network Internal Weaknesses: Increasing difficulty supplying high quality labour at low costs (esp. Singapore) “Buttoned Down” image may not be attractive to younger demographic High cost structure needed for high quality service is difficult to change

SIA is the largest Asia-Pacific airline Source: Singapore International Airlines Case – pp.

Singapore Airlines is in a tough situation but opportunities for global leadership exist Singapore International Airlines (SIA) is facing dramatic environmental shifts, increasing competition, and changing customer demand Several strategic options exist related to how SIA can improve its competitive positioning for the long term I recommend that SIA pursue a high-end differentiation strategy based upon unique positioning as the ‘premier long-distance airline’

There are three key questions that should be addressed Option / Hypothesis Decision Criteria Pros Cons Invest in VA? Yes Return on Investment Enables a lower cost product offering Access to younger demographic Complimentary routes Competes with Star Alliance Limited resources/ opportunity cost May affect reputation Overall Strategy? Low Cost (rather than Differentiation) Long Term Profitability Head to head with new competitors Seems to be the trend in the U.S. Fuel costs are rising Lose reputation as high quality provider Goes against infrastructure Differentiation may be the only way to win Stay in Star Alliance? Market Share Growth Cross-selling opportunities to new customers Access to additional routes quickly Lose control of scheduling May compromise the consistent quality of service

While SIA has a higher OM, competitors are not far behind Source: Singapore International Airlines Case – pp.

Asia is projected to be a key market moving forward Source: Singapore International Airlines Case – p.

Singapore Airlines is in a tough situation but opportunities for global leadership exist Singapore International Airlines (SIA) is facing dramatic environmental shifts, increasing competition, and changing customer demand Several strategic options exist related to how SIA can improve its competitive positioning for the long term I recommend that SIA pursue a high-end differentiation strategy based upon unique positioning as the ‘premier long-distance airline’

Singapore Airlines should strive for unique positioning SIA should set a strategic vision to be the leading global premier service airline Implementation Risks Alliances don’t deliver Costs get too high Other airlines act first Invest in VA (but go high end) Stay in Alliance Expand high quality labour pool This is a critical time as technology and global reach require a high-end international access airline SIA’s best strengths are high end service and global routes Going low-cost will damage long-term profit potential

The growth rate through 2007 is estimated to be high Source: Singapore International Airlines Case – p.